Canadian National Railway is reviewing plans to discontinue key BC Rail routes, citing high maintenance costs and operational challenges in its latest Three-Year Rail Network Plan update. This is reported by the railway transport news portal Railway Supply.

Canadian National Railway recently reclassified over 200 miles of track from “retain” to “discontinue,” marking the first step toward abandonment under Canadian regulations. This strategic move reflects ongoing efforts to optimize network efficiency.

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The change impacts the Squamish Subdivision from Milepost 43 at Thompson to Milepost 157.6 at Lillooet and the Lillooet Subdivision from Milepost 157.6 to Milepost 257 north of Edmond. Both routes remain scenic but difficult and expensive to maintain.

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Canadian National Railway Adjusts Its Operations Strategy

In April 2020, Canadian National Railway ceased through freight operations on these corridors. Remaining traffic from Williams Lake and northern regions now moves via the mainline through Prince George. The only through service left is the seasonal Rocky Mountaineer passenger train.

Under Section 141 of the Canada Transportation Act, railways must outline their plans for each route, including whether to retain or discontinue operations within three years. This process requires public notice and may involve sale, lease, or transfer options.

Canadian National Railway Faces Political and Financial Pressures

These lines are still owned by BC Rail and leased to Canadian National Railway. The original 2004 lease deal sparked a major political scandal known as “RailGate,” resulting in allegations of corruption and a rigged bidding process. Two officials later pleaded guilty to breach of trust.

If regulators approve discontinuance, ownership reverts to the province. Industry experts suggest this move could shift maintenance costs back to the Crown or secure provincial or federal funding, reducing CN’s financial burden while keeping options open for future negotiations.

Source: railfan.com

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